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AFL-CIO Chief: Raising Taxes Will Create Jobs

Posted Feb 24, 2011 07:30am EST by Peter Gorenstein

What's the best way to get Americans back to work?

Raise taxes, according to AFL-CIO President Richard Trumka.  Specifically, he wants to raise the federal gas tax as a means to fund infrastructure spending.  "We need a dedicated source of revenue to create infrastructure in this country," he tells Aaron Task in the accompanying clip.  

"We need to create jobs.  The best way to do that is through infrastructure development."  Simply maintaining the existing infrastructure in this country will cost $2.2 trillion over five years, according to the American Society of Civil Engineers.  That doesn't include Obama's objective of high-speed rails and green energy projects.

Trumka didn't say specifically how much he would raise the gas tax, but mentioned he's shown the President a $256 billion plan to improve infrastructure.  If every billion spent on infrastructure creates 35,000 jobs, as he claims, this package would create close to 9 million jobs over the next five years. 

The idea would also improve America's fiscal and competitive future, says Trumka. "There's also a downstream effect, you put people back to work, they pay taxes, they don't use services, they're contributing, other jobs are created along the way as well," he explains.

The White House isn't on-board with the plan.  Addressing the issue on "Face the Nation" in January, White House Chief of Staff Richard Daley said he isn't in favor of raising taxes right now.

Trumka does have an unlikely supporter for higher gas taxes in the right-leaning Chamber of Commerce.  However, the Chamber of Commerce does not support Trumka's other tax initiative: creating a financial transaction tax.

An idea raised by Democrats during the Dodd-Frank bill debate, the transaction tax would charge financial institutions a minimal fee (less than a penny) for each trade they make.  Trumka says that could raise another $100 billion in revenue without taking money out of the pockets of the middle class.

 

382 comments

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    Robert Thu Mar 03, 2011 09:01 pm EST Report Abuse
    We have given the government money to spend and they have put us into a debt hole. Why would we want to give them more of our money?

    Why didnt they ask him what would happen to an economy that is driven by consumers when you take money away from consumers and divert it to governmental spending? Everyone knows that if you give the government more they simply spend twice as much.
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    Ron Mon Feb 28, 2011 08:16 pm EST Report Abuse
    i thought the stimulus bill was supposed to create jobs and repair the infrastructure?
  • 1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this comment
    usurugger Mon Feb 28, 2011 05:22 pm EST Report Abuse
    So lets me get this straight, Taking money from the private sector creates sustainable jobs? Why not just concentrate all spendiojng at the federal level. No private ownership of property. Government decides what is useful spending . It seems to the left that no spending project is a bad one regardless of who is forced to pay for it. Higher gas prices and cost of oproduction domestically benefits everyone right? Redistribution of wealth promtes investment, ingenuity, innovation, smart decisions, personal accountability, etc right?
  • A Yahoo! User
    9 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this comment
    A Yahoo! User Sun Feb 27, 2011 08:55 pm EST Report Abuse
    I have really simple but IMHO excellent suggestions... Let's tax the unions.. Well start with a head tax, double for unions that force membership. 1/2 of all dues from unions which force membership will be divided equally among all non-union workers. All union officials will pay a surtax on any income received from the union. .. All benefits negotiated which are above the national averages (eg; insurance, retirement, wages) will be taxed at twice the rate now listed in the tax code.. These SOB's want to make our lives miserable, let's return the favor!!!
  • 4 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this comment
    Michael Sun Feb 27, 2011 08:41 pm EST Report Abuse
    Some needs too open a good old can of woop @#$% on this fool....so to knock some sense in this idiot.....he is a Marxist...!
  • 1 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 7 users disliked this comment
    charles Sun Feb 27, 2011 08:34 pm EST Report Abuse
    Most of these comments are interesting because they avoid mentioning Wall Street and the Bankers. I wonder if these individuals suffer from amnesia, ignorance or a basic indifference to the concept of law and justice. In 2008 the biggest theft of public funds took place and no one went to jail. In fact the perpetrators of the crime of the century were given even higher positions of power. Beating up on Public Workers is a cowardly act when genuine crooks are still receiving a king's ransom in bonuses and laughing at the chumps fighting over the scraps left behind. There is a lot of anger in America and it is understandable. We are all getting screwed. The left, the right, the small business owner, the workers in the private sector as well as the public sector. If you really want change start with the demand to prosecute the Wall Street and bank shysters under the Rico act. Unite under a demand that all honest people can relate to. We must get our act together or we are all going down. I'm not a Democrat or a Republican I'm an American. We are being turned against one another so 1% of the population can live like you and I couldn't in our wildest dreams imagine. Believe me your neighbor is not your enemy but we definitely have one. Let us unite and reclaim our country. Demand justice indict the thieves who stole our money and so far have gotten away with it.
  • 9 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 0 users disliked this comment
    ThomasofWales Sun Feb 27, 2011 05:59 pm EST Report Abuse
    I was a Teamster for 5 years and it was an undeniable suck-fest. Management would try to meet deadlines while union true believers would drag their feet and refer any dispute to the shop steward. In a union shop, there is always talk of dignity in the work place. What I saw was contention and a clear, palpable division between the groups. No good times there, let me tell you. Especially when I saw the union dues taken out of my check. OOPS. I mean DNC contributions.
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    ctmom Sun Feb 27, 2011 03:27 pm EST Report Abuse
    Another economic genius. I don't recall electingTrumka for anything why would I care about the nonsense he is spouting?
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    William M Sat Feb 26, 2011 09:04 pm EST Report Abuse
    All Dumbka is good for is sending union goons to beat up people. It is fun to watch him open his mouth and show everyone how stupid he is.
  • 9 users liked this comment Please sign in to rate this comment up. Please sign in to rate this comment down. 1 users disliked this comment
    Robert Sat Feb 26, 2011 07:58 pm EST Report Abuse
    Trumka is an idiot. It is impossible to tax your way to prosperity and infrastructure jobs are not productive wealth building jobs. Infrastructure jobs are temporary jobs.

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